Russia's manufacturing expansion slowed slightly in March as production growth slowed and vendor performance deteriorated to its the weakest in nearly a year, survey data from IHS Markit showed Thursday.
The IHS Markit Russia Manufacturing Purchasing Managers' Index, or PMI, eased to 51.1 in March from 51.5 in February. A PMI reading above 50 signals growth in the sector.
The survey also showed that the rate of cost inflation was the slowest in five months in March but remained at a high level.
IHS Markit economist Sian Jones blamed price hikes and supply shortages for slower production growth, and the softer client demand for the smaller increase in new orders.
"Further historically elevated rates of inflation in March add to concern regarding building price pressures through 2021 to date by the Central Bank of Russia," the economist said.
"We are currently forecasting three more interest rates hikes before the end of the year."
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